Archives for May 19, 2018

Key Highlights

ETH price is slowly on the rise above the $675 support zone with positive signs against the US Dollar.

There is a monster contracting triangle forming with current resistance near $712 on the 4-hours chart of ETH/USD (data feed via Kraken).

The pair has to break the triangle resistance and settle above $712 for an upside acceleration.

Ethereum price is slowly moving higher versus the US Dollar and Bitcoin. ETH/USD must clear a huge sell wall near the $712-714 zone for more gains in the near term.

Ethereum Price Resistance

There were mostly downsides in ETH price this past week from the $730 swing high against the US Dollar. The price declined and moved below the $700, $675 and $660 support levels. It even traded close to the $650 level and formed a low at $655.67. Later, it found buyers and started an upside move from $655.67. It moved higher and broke the $675 resistance level.

It also succeeded in moving above the 50% Fib retracement level of the last drop from the $741.41 high to $655.57 low. However, there is a crucial barrier for buyers near the $712-714 zone. More importantly, there is a monster contracting triangle forming with current resistance near $712 on the 4-hours chart of ETH/USD. Furthermore, the current wave struggled near the 76.4% Fib retracement level of the last drop from the $741.41 high to $655.57 low. Therefore, a break above the $712-714 zone is must for further gains in ETH in the near term.

The above chart indicates that the price is approaching a key breakout above $712. If sellers fail to defend the triangle resistance, the price could surge higher and move towards $760. On the downside, the $675 triangle support holds a lot of importance.

4-hours MACD – The MACD is slowly moving in the bullish zone.

4-hours RSI – The RSI is currently just above the 50 level with ranging signals.

Key Points

Bitcoin cash price got bid near the $1.130 level and started a recovery against the US Dollar.

There is a crucial bearish trend line forming with resistance near $1,320 on the 4-hours chart of the BCH/USD pair (data feed from Kraken).

The pair may continue to rise in the short term, but it is likely to face sellers near $1,320-40.

Bitcoin cash price is showing positive signs above $1,150 against the US Dollar. However, upsides in BCH/USD are likely to be limited by the $1,320 resistance zone.

Bitcoin Cash Price Upside Hurdle

This past week, there was a sharp increase in selling pressure on bitcoin cash price above $1,400 against the US Dollar. The price started a downside move and traded below the $1,350 and $1,280 support levels. There was even a break below the $1,200 pivot level, which opened the doors for more losses. It traded close to the $1,120 support level and a low was formed at $1,131.

Later, the price started an upside correction and moved above the $1,120 resistance. It also moved above the 23.6% Fib retracement level of the last drop from the $1,506 high to $1,131 low. However, there are many barriers on the upside near $1,300. An initial hurdle is near $1,128, which was a support earlier and it may now prevent gains. There is also a crucial bearish trend line forming with resistance near $1,320 on the 4-hours chart of the BCH/USD pair. Moreover, the 50% Fib retracement level of the last drop from the $1,506 high to $1,131 low is positioned near $1,318 to act as a hurdle.

Looking at the chart, the price may continue to rise in the near term towards $1,300. However, a break above $1,300 and $1,320 won’t be easy.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is moving back in the bullish zone.

While crypto markets are still open on weekends things predictably slow down a little. Activity has been relatively flat over the past two days and no momentum has built in either direction. Fortunately there has been no crash back down to early April levels, but on the flip-side the bulls could not push total market capitalization back over $400 billion either. Bitcoin has wallowed around $8,300 for a few days with no gains or losses on yesterday’s levels. Altcoins have been a mixed bunch, some falling further while others have made small gains. Today’s coin of the moment is Zilliqa.

Coinmarketcap is currently reporting an 8% gain on ZIL which has pumped and dumped over the past week or so. Trading at $0.146 Zilliqa is up from $0.135 this time yesterday. Over the week however ZIL has lost 15% from $0.174 the same time last Sunday. When a number of exchanges announced listings it pumped to an all-time high of $0.23 on May ten but has fallen back ever since. Against Bitcoin ZIL is up 8.5% on the day to 1785 satoshis from 1650 sats this time yesterday. Over the week though it has declined 14.6% against BTC from 2090 satoshis on Sunday last week.

The only announcements on their feed are about stress testing that is currently taking place on the Zilliqa network. Another exchange listing however is likely to be responsible for the current boost. India’s Unocoin listed ZIL on May 18 which has resulted in solid momentum for this altcoin over the weekend.

Currently Binance commands 40% of all Zilliqa trading, followed by Huobi with around 24% of the total. Total trade volume has climbed by around 57% from $40 billion to $63 billion over the past 24 hours. There is a total supply of 12.6 billion tokens with around 7.28 billion circulating. Zilliqa has remained just on the edge of the top 25 altcoins with a market cap of just over a billion dollars.

All crypto markets combined have climbed marginally over the past day by 1.3% to $379 billion. A breakout in either direction is expected early next week. Other altcoins having a good weekend at the moment are Bitcoin Cash, EOS, Ontology, and 0x.

An Iranian parliament member has suggested that digital currencies be used in attempts to work around returning economic sanctions from the United States.

Iran and Digital Currencies

The idea was brought forth by MP Mohammad-Reza Pourebrahimi who recently met with Dmitry Mezentsev, the Russian Chair of the Federation Council Committee on Economic Policy, in Moscow.

Pourebrahimi was quoted as saying that digital currencies could provide a way for Iran and Russia to avoid U.S. dollar transactions, and that the coins could even be used as a replacement for the SWIFT inter-bank payment system — a protocol used by the majority of financial institutions across the globe to transfer money.

Pourebrahimi also said that the Central Bank of Iran (CBI) had been asked by Parliament to start developing proposals for using digital currencies. Similar to the way that digital currencies can help citizens under oppressive and unstable regimes, they can also help sovereign governments bypass sanctions enforced by foreign powers.

The MP, who chairs the Iranian Parliamentary Commission for Economic Affairs, said he had discussed this topic in the State Duma’s Committee on Economic Policy and that Iran had established cooperation with Russia on the issue.

“They [Russia] share our opinion. We said that if we manage to move this work forward, then we will be the first countries that use digital currencies in the exchange of goods,” he said.

In relation, Russia’s Mezentsev noted that “interbank relations between our countries should be of great importance” considering the shared backdrop of international sanctions currently in place against both countries.

Using Digital Currencies to Fight Sanctions

The idea to use digital currencies in international trade emerged in Tehran after the country’s officials complained that the U.S. was “terrorizing” companies attempting to do business with the Islamic Republic. Because of recent moves by President Trump, Iranian’s are also seeing European companies restrict trade over fears that they will fall afoul of the sanctions.

Priscilla Moriuchi, director of strategic threat development at fintech company Recorded Future, said she is skeptical about the Petro’s success and feels the same way about Iran’s experimental cryptocurrency:

“The Petro will struggle to be exchangeable for hard currencies such as the dollar or the euro and this will limit its appeal to investors and users. Iran is likely to experience some of the same hurdles if it decides to create its own oil-backed cryptocurrency,” she said.

More recently, over $2.5 billion has left the country through digital currencies, according to Pourebrahimi. This is despite the fact that Iran “banned” Bitcoin trading in April of this year — although it is still possible to purchase coins if users utilize “mixers” to hide the origin and destination of transactions.

He also expressed his dissatisfaction with the level to which the technology is being implemented. According to him, the technology behind bitcoin is capable of so much more than it is being used for today. Jack Ma becomes the latest influential figure in the business world to call bitcoin a bubble.

Interested in Blockchain and not Bitcoin

The Alibaba founder revealed that his company is heavily invested in blockchain research. He also went on to say:

“Blockchain is now a hot word. First, blockchain is not a bubble, but Bitcoin is a bubble. Bitcoin is just a tiny application of blockchain. At least inside Alibaba, blockchain must be a solution that addresses the privacy and security issues in the digital era.”

According to Ma, Alibaba believes that there is enormous potential for blockchain application in several areas of the company’s business. The e-commerce giant has been researching on blockchain-based solutions with a focus on data security and privacy protocols. The company is also investing in the technology as it reportedly owns the highest number of blockchain technology patents in the world.

Despite the considerable promise that blockchain holds, Ma is disappointed with the general profit-making narrative that pervades the industry. Speaking during the conference, he bemoaned the fact that many stakeholders seem to view blockchain as a money-making tool rather than a value creation technology. He condemned those who make blockchain to be a “huge gold mine” at the expense of leveraging the technology to improve upon the global business process.

So far, Alibaba has implemented some blockchain-based protocols in its business. The company plans to utilize blockchain tech in for public welfare and e-commerce applications. Alibaba signed a partnership with PwC in 2017 to research ways of leveraging the technology in creating a robust food traceability framework to combat counterfeit food products. The previous year, the company launched the first ever blockchain-based email repository service.

Business Elites Believe Bitcoin is a Bubble

Jack Ma also spoke about bitcoin, the number cryptocurrency in the world. Ma’s attitude to bitcoin seems to be one of disinterest even going as far as to call it a bubble. This declaration of his is a marked departure from earliest comments where he expressed the fact that he had little knowledge of bitcoin. In the past, he also said that he prefers to focus on blockchain as it shows more potential for development than bitcoin.

By calling bitcoin a bubble, Ma has joined the ranks of Warren Buffett, Bill Gates, Charlie Munger and several other business moguls who in the bitcoin bashing brigade. Warren Buffett has previously labeled bitcoin as “rat poison square,” “speculation,” and “lacking any intrinsic value.” Bill Gates recently declared that he would “short bitcoin” if he could. Charles Munger, the second-in-command to Buffett, called bitcoin a “noxious poison.”

Presently, there is an increased pace in the areas of technological development when compared to the progress achieved over the last couple of decades. This exponential increase springs off the dashboard of the internet and the numerous millennial technologies that are being built on top of it. These emerging developments are leading us to a

Mobile phone giant HTC is not ready to be left out of the blockchain and cryptocurrency movement. The 21-year old mobile phone company headquartered in Taiwan is developing its own Android Smartphone that will be powered by blockchain technology.

Exodus not Finney

According to The Next Web (TNW), the premium smartphone called ‘Exodus’ will come with a universal cryptocurrency wallet and an inbuilt secure hardware enclave that will take care of distributed ledger technology-based apps.

In 2015, HTC and Valve Corporation joined forces in creating the Vive virtual reality headset, which has not ceased generating significant returns for the firm since then. Phil Chen was entirely instrumental in the success of the VR headset, as such HTC has made him the head of Exodus, blockchain technology and cryptocurrency-related matters in the company.

HTC Blockchain Network on the Cards

As per TNW, the company is putting preparations in top gear to launch its native blockchain network which all Exodus phones would be able to connect to and facilitate users’ cryptocurrency trading activities. Also, the phone would offer support for Bitcoin’s Lightning Network protocol, Dfinity, and other blockchains. Chen declared:

“Through Exodus, we are excited to be supporting underlying protocols such as Bitcoin, Lightning Network, Ethereum, Dfinity and more. We would like to support the entire blockchain ecosystem, and in the next few months we’ll be announcing more exciting partnerships together.”

Blockchain Technology’s Unending Ubiquity

Cryptocurrencies would be an accepted payment method for the purchase of Exodus, however, the firm is yet to fix a price for the phone.

Similarly, Sirin Labs in collaboration with Foxconn, the world’s largest manufacturer of contract electronics have strategically combined, and they are almost done developing the world’s first blockchain, and Android-powered Smartphone, Sirin Finney.

On May 11, Sirin Labs released specifications for the flagship phone and in addition to having blockchain-specific features such as a highly secure cold storage wallet that supports bitcoin and a vast array of altcoins, the $1,000 smartphone also comes with Android 8.1 OS that runs decentralized apps.

While blockchain technology has proven itself in quite many industries across the globe, the mobile phone ecosystem is just warming up to the revolution.

On May 11, 2018, BTCManagerreported that China’s leading smartphone manufacturer, Huawei, had hinted that bitcoin wallet would soon be available on its AppGallery for hodlers who own the company’s latest smartphones.

While some have criticized the blockchain-powered mobile phones initiative of firms like Sirin Labs, HTC, and Huawei, saying there is nothing extraordinary about blockchain-based handsets as other mobile devices can as well perform same crypto-related functions with the right software. This latest development, however, goes a long way to show that blockchain technology is gradually coming of age and it is just a matter of time before it proliferates into all ecosystems.

India, one of the largest countries in the world with a population of 1.3 billion potential future users of cryptocurrencies, remains in a legal limbo as cryptocurrency exchanges await more clarity from the Reserve Bank of India (RBI) and the country’s supreme court. Operators have recently been barred by banks, under orders from the central bank, and petitioners are blocked from filing any case against the RBI on the subject of cryptocurrency in any of the other high courts.

India’s Cryptocurrency Ecosystem to Have Fate Sealed in Summer

Cryptocurrency exchanges in the Republic of India have been facing a legal ordeal particularly since early this year. Finance minister Arun Jaitley said in his budget speech in February that the government would do everything in its power to discontinue the use of digital currencies for criminal uses.

“The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.”

It became unclear, however, whether government authorities and the central bank were in practice prohibiting the sale or purchase of cryptocurrencies. Various sources claimed India truly banned Bitcoin trading, but officially, the RBI decided to end the relationship between its own banks and any cryptocurrency exchange. Not an outright ban, but not crypto-friendly either.

The Reserve Bank of India has added a directive to wind down all existing accounts by the first week of July 2018, which aims to push any operator out of the country. Taking in account a Supreme Court order by chief justice Dipak Misra, the legal route of court appeals against the RBI order is also proving to be a treacherous road.

“The petitioners shall be at liberty to submit a representation to the competent authority of RBI within two weeks hence which shall be dealt with in accordance with law.”

Given that the next date for the hearing of the case in the apex court is July 20, which is two weeks after the RBI deadline to close down all crypto-related bank accounts, there is a growing wave of exasperation among the cryptocurrency community in India. Kunal Barchha, director at Kali Digital Eco-Systems, took the RBI to court and told Quartz how this is affecting the ecosystem.

“The understanding is that this means that the ban will continue, at least for the time being. Businesses are getting affected due to this uncertainty and this phase will continue for a while.”

Former JPMorgan blockchain lead Amber Baldet unveiled her new startup project, Clovyr, at the Consensus conference in New York on Monday. Baldet left her position at JPMorgan in April to work on Clovyr. She led JPMorgan Blockchain Center of Excellence and helped the firm succeed with open-source initiatives, such as Quorum. In a strange juxtaposition,

Germany second-biggest stock exchange, Börse Stuttgart, is expanding its footprint into the cryptocurrency sector with the launch of a new crypto trading platform. Bison is the new platform that the exchange says will simplify the process of trading digital currencies and becomes the first crypto app, backed by a reputable stock exchange.

Bison Crypto Trading App

The new app will make trading of cryptocurrencies mass marketable. The fact that the same will also be done through smartphones should go a long way in making it easy for most people to participate in the endeavor.

Developed by Sow Labs, supported by Börse Stuttgart Digital Ventures, the new application plans to do away with the technical difficulties that have made it impossible for some people to venture into cryptocurrency trading.

While still in development stage, Bison should be available to the masses for free later in the autumn. Ahead of the much-awaited launch in September, the firm is currently conducting a competition whereby entrants stand to win as much as three bitcoins (BTC), ten ethers (ETH), 20 litecoins (LTC), and 50 ripples (XRP) as part of the marketing campaign.

Trading Fees and News Feed Part of Bison Offering

Fee-free trading is what Bison promises as it looks to get as many people as possible into trading cryptocurrencies. However, it is still unclear how it plans to achieve the same. The app will also come with a news feed where investors will access a wide array of information needed to make informed decisions about investments.

Bison is to analyze more than 250,000 tweets from the cryptocurrency investment community and summarize the most important, for users to have a feel of sentiments in the market. The crypto-radar below shows that currently as per Bison’s analysis, cryptocurrencies are experiencing overall neutral sentiment.

Unlike in the past where registration for user account would take up to three days, the app promises a maximum of three minutes until one can trade their favorite cryptoassets.

For starters, Bison is to offer support for four digital currencies; BTC, ETH, LTC, and XRP. However, there are plans to increase support for more digital assets in future.

The unveiling of Bison app for trading crypto assets according to the exchange was triggered by a recent survey that showed investors want easy access to the crypto markets.

“So far, investing in Bitcoin, Ether & Co. has been anything but easy. Bison consistently breaks down barriers: The app is easy to use, the user interface is available in German, later also in English,” Börse Stuttgart in a statement.

Cryptoassets Attract Mainstream Interest

Established and regulated stock exchange venturing into the sector provides the clearest of indications that crypto assets could soon find their way into the mainstream industry.

There is already talk that tokenization could soon result in the creation of a new modern stock exchange whereby, instead of trading shares, people will be able to trade tokens. Börse Stuttgart joins a growing list of mainstream companies that have in the recent past ventured into the cryptocurrency space in the effort of meeting growing demand for such services.

Media Giant Thomson Reuters has already unveiled a data feed for crypto assets, which according to many observers opens the door for the firm to support digital assets in its trading platforms in future. A number of products all designed to target institutional investors have also cropped up as firms position themselves to take advantage of the growing market.

Options and futures trading of cryptocurrencies is slowly becoming a reality thanks to the evolution of crypto assets. Entry of professional and institutional investors all but affirms the push by the likes of Börse Stuttgart to pursue opportunities in the sector.